Correlation Between Marsh McLennan and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Marsh McLennan and GALENA MINING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Marsh McLennan and GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marsh McLennan Companies and GALENA MINING LTD, you can compare the effects of market volatilities on Marsh McLennan and GALENA MINING and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Marsh McLennan with a short position of GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marsh McLennan and GALENA MINING.
Diversification Opportunities for Marsh McLennan and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marsh and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marsh McLennan Companies and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD and Marsh McLennan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Marsh McLennan Companies are associated (or correlated) with GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of Marsh McLennan i.e., Marsh McLennan and GALENA MINING go up and down completely randomly.
Pair Corralation between Marsh McLennan and GALENA MINING
If you would invest 20,410 in Marsh McLennan Companies on October 28, 2024 and sell it today you would earn a total of 450.00 from holding Marsh McLennan Companies or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Marsh McLennan Companies vs. GALENA MINING LTD
Performance |
| Timeline |
| Marsh McLennan Companies |
| GALENA MINING LTD |
Marsh McLennan and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marsh McLennan and GALENA MINING
The main advantage of trading using opposite Marsh McLennan and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marsh McLennan position performs unexpectedly, GALENA MINING can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GALENA MINING will offset losses from the drop in GALENA MINING's long position.| Marsh McLennan vs. Axway Software SA | Marsh McLennan vs. GBS Software AG | Marsh McLennan vs. China BlueChemical | Marsh McLennan vs. PTT Global Chemical |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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